Growth stocks are one of the best methods for growing your wealth to better prepare yourself for retirement.
Luckily, the US market has a treasure trove of growth stocks that you can sift through to include in your investment portfolio.
Investors need to look for attributes such as a strong brand and reputation, good management, and tailwinds that can sustain the business’s growth over the long term.
We highlight four US growth stocks that reported higher revenue and profits and believe that these four could end up on your buy watchlist.
Domino’s Pizza (NYSE: DPZ)
Domino’s Pizza is the largest pizza company in the world with more than 20,900 stores in over 90 markets.
The company uses a franchise system where independent franchise owners make up around 99% of Domino’s total stores.
The pizza chain reported a strong set of earnings for the first half of 2024 (1H 2024).
Revenue rose 6.5% year on year to US$2.2 billion while operating profit climbed 9% year on year to US$406.5 million.
Net profit surged by 25.1% year on year to US$267.8 million.
The business also generated a positive free cash flow of US$230.5 million for 1H 2024, 12.8% higher than the US$204.3 million churned out a year ago.
A quarterly dividend of US$1.51 was declared, a nearly 25% year-on-year increase from the US$1.21 paid out a year ago.
Domino’s Pizza logged US same-store sales growth of 5.2% for 1H 2024 and 1.5% for its international stores.
For the trailing 12 months, the company opened a net total of 868 stores (excluding Russia).
Management estimates that the total size of the quick service restaurant (QSR) pizza industry is worth US$94 billion, offering ample opportunities for the company to continue growing.
The company updated its long-term guidance for 7% annual growth in sales from 2024 to 2028 along with an 8% plus annual increase in operating profit.
Meta Platforms (NASDAQ: META)
Meta Platforms is a social media company that owns brands such as Facebook, Instagram, and WhatsApp that are used by millions of people daily.
The social media behemoth announced a stellar set of earnings for 1H 2024.
Revenue jumped 24.5% year on year to US$75.5 billion with operating profit surging 72.5% year on year to US$28.7 billion.
Net profit came in at US$25.8 billion, 91% higher than the US$13.5 billion reported a year ago.
Meta Platforms also generated a positive free cash flow of US$24 billion, up 31% year on year.
A quarterly cash dividend of US$0.50 was declared for the second quarter of 2024 (2Q 2024).
Family daily active people (DAP) increased by 7% year on year to 3.27 billion, a testament to Meta Platforms’ continued expansion.
Meta Platforms just released the newest version of its open-source artificial intelligence (AI) model called Llama 3.1 last month.
The company hopes that by releasing this to the general public, it can capture some of the market share from people who are using its competitor’s AI models.
S&P Global (NYSE: SPGI)
S&P Global, or SPG, is a data provider to governments, businesses, and individuals.
The company provides credit ratings, benchmarks, analytics, and workflow solutions for the global capital, commodity, and automotive markets.
SPG reported a strong set of earnings for 1H 2024 with revenue rising by 12% year on year to US$7 billion.
Operating profit climbed 38% year on year to US$2.8 billion while net profit jumped 53% year on year to US$2 billion.
The business is also a consistent free cash flow generator, with 1H 2024’s free cash flow surging by 87.7% year on year to US$2.4 billion.
Income investors will also love the business as SPG has paid a dividend every year since 1937 and has increased its dividend without fail for the last 50 years.
Its most recent quarterly dividend stood at US$0.91, a slight increase from the US$0.90 paid out a year ago.
SPG has guided revenue growth of between 8% to 10% for 2024 and recently completed the acquisition of Visible Alpha, a financial technology provider of deep industry and segment consensus data.
Palantir (NYSE: PLTR)
Palantir provides software platforms for big data analytics by tapping into AI and serves both governments and corporations.
The company released a sparkling set of earnings for 1H 2024.
Revenue increased by 24% year on year to US$1.3 billion with operating profit soaring from just US$14.2 million a year ago to US$186.2 million in the half year.
Net profit clocked in at US$239.7 million, up more than fivefold year on year.
The business also generated a positive free cash flow of US$268.2 million, staying constant year on year.
Palantir’s total customer count jumped 41% year on year to end 30 June at 593 while its commercial customer count surged 55% year on year to 467.
During 2Q 2024, the company closed 96 deals of at least US$1 million, of which 27 were at least US$10 million in size.
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Disclosure: Royston Yang owns shares of Meta Platforms.
